{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/360/970/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"360","topic_title":"Property, Plant, and Equipment","subtopic":"360-970","subtopic_title":"Real Estate—General","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Real Estate Syndication","heading":null,"paragraphs":[{"citation":"360-970-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">If a real estate developer sells a recently constructed office building to a public real estate syndication and negotiates a master leaseback agreement with the syndication general partner, under which the syndication pays a fee to the seller and the seller leases the vacant space at a market rate at the date of sale for a defined lease-up period, <span class=\"sfragment\" id=\"sfr_26D27942-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> payments to and receipts from the seller shall be treated by the syndication as adjustments to the basis of the property and will affect future depreciation. See paragraph <a href=\"/asc/360/970/#360-970-55-3\" class=\"xref\">970-360-55-3</a> for guidance if the terms of the agreement meet the definition of a derivative. </span></span></div></div>","snippet":"If a real estate developer sells a recently constructed office building to a public real estate syndication and negotiates a master leaseback agreement with the syndication general partner, under which the syndication pa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2668a242432b3dc49a7b1794600d3c8e174701cb80c39a73be82d170cefbc137","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14ca267c0779cfa98771e98a7e8116c3ccaebe1d4788fe4402edc26744cb7502","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}},{"block":"Real Estate Project Costs","heading":"Capitalized Project Costs","paragraphs":[{"citation":"360-970-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_26E931E2-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/p/#project-costs\" class=\"term\" title=\"Costs clearly associated with the acquisition, development, and construction of a real estate project.\"><span>Project costs</span></a>, which are costs that are clearly associated with the acquisition, development, and construction of a real estate project, shall be capitalized as a cost of that project. See Topic <a altsource=\"GUID-4F83F042-87DA-40E8-BD1B-8C7D1BEED7DC.ditamap\" class=\"ditamap\">340-40</a> for guidance on capitalization of costs that are not within the scope of this Subtopic or Subtopic <a altsource=\"GUID-F3217AC4-BD9C-4564-884D-A0B01483BA7D.ditamap\" class=\"ditamap\">970-340</a>.</span></span> </div> </div>","snippet":"Project costs, which are costs that are clearly associated with the acquisition, development, and construction of a real estate project, shall be capitalized as a cost of that project. See Topic 340-40 for guidance on ca…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e95a893b8b982abf7e5de575924d026b232775e3cea5655253935758f80f7011","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}},{"citation":"360-970-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_26E935D9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/i/#indirect-project-costs\" class=\"term\" title=\"Costs incurred after the acquisition of the property, such as construction administration (for example, the costs associated with a field office at a project site and the administrative personnel that staff the office), legal fees, and various office costs, that clearly relate to projects under development or construction. Examples of office costs that may be considered indirect project costs are cost accounting, design, and other departments providing services that are clearly related to real estate projects.\"><span>Indirect project costs</span></a> that relate to several projects shall be capitalized and allocated to the projects to which the costs relate. </span></span> </div> </div>","snippet":"Indirect project costs that relate to several projects shall be capitalized and allocated to the projects to which the costs relate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:624d1a9933a32f8a6f68495957a5b9a4b985869c0a5f80601d1b470296e73a13","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f6e17482e54ddfaa730acafad67ebabcabaf387d7356158d3691c0c9be39c99","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}},{"block":"Real Estate Project Costs","heading":"Assets Transferred Between Entities","paragraphs":[{"citation":"360-970-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">See Section <a altsource=\"GUID-E3A0DA1F-4279-4C4A-A9C4-B56BCF299298.ditamap\" class=\"ditamap\">974-720-25</a> for adjustment of assets that will be transferred between a real estate investment trust and its adviser.</div> </div>","snippet":"See Section 974-720-25 for adjustment of assets that will be transferred between a real estate investment trust and its adviser.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6c14c156b005723e542740163c27f180286242a6e7826163c1878fea1476a05","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:458bc140bf919167d1fe43ecfcce36e7b439e739f85bb0e788b7d45c83da8629","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}},{"block":"Real Estate Project Costs","heading":"Other Considerations","paragraphs":[{"citation":"360-970-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\">See Section <a altsource=\"GUID-611013A3-57A7-47A6-BE1D-875294BDC8D6.ditamap\" class=\"ditamap\">410-20-25</a> regarding accounting for retirement and environmental costs at acquisition.</div> </div>","snippet":"See Section 410-20-25 regarding accounting for retirement and environmental costs at acquisition.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84e7fbcaa312a2f674f5c14c154bfaec041af55ee07b21c1ff37f75925e8ee36","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477740","source_sha256":"58a121fdd46bf2d833fb6a1e623e0bafb3cea01180b83480ab9b20a530e70e0e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4ea9d0eae745e94945eaf190c7a1289a0534c61ce320f196fa35eb90c185324","downloaded_from":"2026-09-10T00:12:05.574Z","last_downloaded_at":"2026-09-10T00:12:05.574Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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